US stocks soar on consumer sentiment; Dow up 1.55%
Published Dec 09, 2011 05:29PM ET
The Dow Jones Industrial Average ended Friday up 1.55%, the S&P 500 index roared ahead 1.69%, while the Nasdaq Composite index was up 1.58%.
In Europe, 26 of the 27 treaty nations agreed to tighter fiscal integration and discipline measures, with Britain acting as the holdout on grounds it did not get enough concessions and safeguards in exchange for subjecting its financial markets to possible higher taxes.
Back in the United States, the trade deficit for October hit $43.5 billion, down from a revised $44.2 billion in September, and much better than expected, according to the Commerce Department.
Furthermore, the latest Thomson Reuters/University of Michigan consumer confidence came in at 67.7, up from 64.1 in late November, and above a forecast for 65.9.
Consumer spending accounts for about 70% of U.S. economic output, and increased confidence suggests better days lie ahead for the economy and stock market.
Among the chief gainers in the session, Caterpillar was up 3.28%, General Electric rose 3.25% and financial giant JPMorgan Chase was up 2.98%.
Leading losers included DuPont, which was down 3.18% after slashing earnings estimates, with most other leading losers finishing in in only slightly positive territory, including AT&T and Wal-Mart, both up 0.59%.
Hopes for an end to the European debt crisis buoyed stock indices in Europe as well.
France's CAC 40 rose 2.48%, Germany's DAX shot up 1.91% and Britain's FTSE 100 rose 0.83%.
Next week, the Federal Reserve will hold its Federal Open Market Committee meeting, where monetary policy authorities will discuss what to do with benchmark interest rates, which are down at very low 0.25% rates and holding.
Even if the Fed makes no change to the target lending rate, language suggesting that the sluggish U.S. economy is getting better, worse or still limping along could rally or roil stock markets.
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Written By: Investing.com
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